Sonus Networks Earnings: Here’s Why Investors are Happy Now

Sonus Networks, Inc. (NASDAQ:SONS) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4.76%.

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Sonus Networks, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $-0.02 in the quarter as EPS of $-0.02 in the year-earlier quarter.

Revenue: Decreased 1.62% to $63.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sonus Networks, Inc. reported adjusted EPS loss of $0.02 per share. By that measure, the company beat the mean analyst estimate of $-0.03. It beat the average revenue estimate of $61.12 million.

Quoting Management: “Sonus delivered solid first quarter results, highlighted by continued strong SBC revenue growth which increased 77% over the first quarter last year,” said Ray Dolan, president and chief executive officer. “Our results reflect consistent execution and position us for a strong year. In addition to delivering top-line growth, we remain focused on achieving profitability on a non-GAAP basis and generating cash from operations for the full year 2013.”

Key Stats (on next page)…

Revenue decreased 15.76% from $75.14 million in the previous quarter. EPS decreased to $-0.02 in the quarter versus EPS of $0.01 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.01 to $0. For the current year, the average estimate has moved up from a loss of $0.02 to $0 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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